Global Nickel Prices Rise 3% Amid Indonesia's Mining Crackdown
Thu 05 Nov 2026, 14:27 PM
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Global nickel prices surged to their highest level in more than five weeks on Thursday (November 5, 2026), driven by market concerns over potential supply tightening after Indonesia announced plans to take action against companies affiliated with a major nickel ore trader.
Citing Reuters, the three-month nickel contract on the London Metal Exchange (LME) rose 3% to USD 16,255 per tonne in official trading. Earlier in the session, nickel prices reached USD 16,360 per tonne, their highest level since September 28, 2026.
Meanwhile, the most actively traded nickel contract on the Shanghai Futures Exchange (SHFE) closed 5.3% higher at 122,550 yuan, equivalent to approximately USD 18,375 per tonne. The price marked a two-week high and the largest daily increase since January.
The positive market sentiment followed an announcement by Indonesia's forestry task force that it would take action against companies owned by or affiliated with businessman Arif Kurniawan. The companies are suspected of operating illegally in forest areas.
The task force also identified potential irregularities in mining governance, including licensing procedures and the issuance of mining permits. Several local media reports identified Kurniawan as a former Glencore trader who reportedly controls a significant portion of Indonesia's nickel ore trading activities.
Meanwhile, nickel producers in Indonesia have faced rising production costs and tighter mining quotas throughout the year. These conditions have prompted several producers to implement coordinated production cuts.
Macquarie analysts forecast that Indonesia's total exports of nickel and its derivative products will decline by approximately 6% this year, a larger decrease than previously projected.
"With the market now focusing on nickel ore quotas for 2027," Macquarie analysts wrote in a note discussing Indonesia.
Market attention toward next year's production quota policies could influence the outlook for global nickel supply. As one of the world's leading nickel producers, changes in Indonesia's mining policies could affect the balance of global nickel supply and international nickel prices.
Meanwhile, other industrial metals also recorded gains. Copper prices edged up 0.1% to USD 14,025 per tonne. A weaker US dollar also supported prices of metal commodities traded in the greenback.
In China, the world's largest metals consumer, the Yangshan premium for imported copper increased to USD 210 per tonne, matching the record high last recorded in 2013.
Aluminium prices rose 1.6% to USD 3,097 per tonne, while zinc gained 0.9% to USD 3,840 per tonne. Lead increased 0.9% to USD 1,898 per tonne, and tin climbed 1.7% to USD 47,775 per tonne.
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